The Price of a Stock at the Beginning of a Year

Multiple Choice

The price of a stock at the beginning of a year is $50.There is a 70 percent chance of its price rising to $55 by the end of the year and a 30 percent chance of its price falling to $45.The stock will pay an amount of $2 at the end of the year.The current yield of the security is

A) ​4 percent
B) ​5 percent
C) ​70 percent
D) ​30 percent